Renting versus buying a house has been a long-time debate for many people. It is not easy to decide whether to rent or buy a home because we are all after being economical. Either of two has got some advantages and disadvantages.
Therefore, it is crucial to weigh between the advantages and disadvantages that come with both options before making a decision.
At this time of corona, where many economic activities have come to cessation, making the decision has become tougher. The coronavirus pandemic has also affected the real estate market vastly.
Renting a House
Many people prefer renting rather than buying a house because they consider it cheap. According to Yardi Matrix, the average house renting price in the United States is $1,405 per month as of this June 2019.
This figure reflects a 2.9 percent increase as compared to that of the last year. This means that the median rent price of houses in the country is $16, 860 per year. This amount is affordable for the working class and is favourable for the middle-class citizens.
Advantages of Renting
Exempt from ownership responsibilities
When you rent an apartment, all you will have to do is to pay for the rent and maybe the bills, but you are free from any ownership responsibilities.
For example, issues of building maintenance, upgrading the property, and fixing structural problems. None of these are your responsibility. The apartment will likely be using a property management company who can deal with ongoing maintenance as part of their contract.
You also do not have to pay for the air filters, light bulbs, and smoke detector batteries unless you do it willingly.
In fact, this is one of the main reasons why many people would prefer renting to purchasing a house.
Access To Amenities
Some amenities, such as swimming pools, walking lanes, fitness centers, and playing pitches, are costly to have in your compound.
But if you rent a home with these amenities, you will be accessing them and enjoying them without paying much.
In fact, most of the homeowners include the expenses in the rental cost so that you do not feel it.
Free From Real Estate Taxes
Each state in the country has its rates of real estate taxes that homeowners ought to pay to the local authorities. When you rent, you do not pay these taxes, which sometimes may be higher than usual.
Flexibility Of Where To Live
A renter is a person who can live anywhere provided that he/she likes the place. Unlike a homeowner who will have to stay at that place where the home is located unless he/she sells the house.
Lower Utility Costs
If you rent, you will enjoy lower utility costs because some necessities will be provided by the landlord/Landlady. Issues like insurance costs will not affect you but will lie on the shoulders of the homeowner.
Buying a House
Purchasing a property is among the most significant long term investments that anyone can make. It’s a huge decision with many different aspects to consider. There are certain things you will need to look for. Location, style, long term value for starters.
The average cost of buying a house in the United States is $200,000, according to Zillow. If you would like to buy a home this year, you are likely to pay around $199,200.
In the United Kingdom the average cost of buying a house as of February 2020 is £230,332.
Advantages of Buying a House
It is a long term investment
When you purchase a home, you have purchased a building and a piece of land. These are two valuable resources, especially the land.
Even when the structures of the building will depreciate in terms of value, but the land will keep on appreciating.
Enjoy Privacy and Freedom
If you own a home, you have the freedom to do whatever you want in your house. Unlike a tenant who adheres to the rules of the landlord/lady.
If you would like to make structural changes, such as extensions or even adding a swimming pool you can. Along as you get planning permission of course.
Enjoying federal tax benefits
Mortgage interest is deductible on home equity loans and also property taxes. When you buy your home using a fixed-rate mortgage, you will enjoy paying the same amounts of interest and principal until it is paid off.
It is cheaper
In some cases, paying off a mortgage every month can be cheaper than paying rent. Obviously, this depends a lot on the mortgage rates at the time. This is one of the most important factors that you need to look into properly.
Added to this when you buy a house, you will have done it once and for all. Renting however, you will keep on paying rental fees every month for as long as you want to stay living there.
Pride of home ownership
Buying your first house or apartment can be a source of pride. It is one way of defining success in the modern world. From a personal point of view, it can also result in a feeling of great accomplishment and signal a new part of your life.
Should You Buy Or Rent During This Period Of Coronavirus Pandemic?
Coronavirus is a deadly pandemic that has affected the lives of millions of people across the world. Most of the world’s economies have also suffered.
Since the coronavirus spread in the United States, many rules have changed concerning the real estate market. A good example is the lowering of the mortgage rates and the federal government’s interest rates.
After the implementation of these orders, many real estate agents stopped selling their houses. Therefore, buying a home during this time is hard because it is rare to find one on sale.
However, if you get a house on sale and it impresses you, this could be one of the best times to buy the house and take advantage of current offers.
Renting at this time is also hectic because you need to have a steady flow of income for you consistently pay. If most of the economic activities have stopped due to the lockdown, how will you raise the rental fees?
Unless you get an understanding, homeowner who will give you a relief on your rental fees. You can also come into agreement with him/her on how you are going to make the payments, whether in instalments or otherwise.
I would advise a person who is ready to own a home to buy one during this covid19 time as he/she will enjoy many offers which are always not there. Low mortgage rates present today will make you not to feel relief in buying a house in 2020.
Of course, your other option is to wait it out until things return to a new normal.